Monthly Leasing, Finance Index

The Equipment Leasing and Finance Association’s (ELFA) Monthly Leasing and Finance Index (MLFI-25), which reports economic activity for the $628 billion equipment finance sector, showed overall new business volume for February was $5.0 billion, up 22% from volume of $4.1 billion in the same period in 2011. Volume was down 2% from the previous month. Year-to-date cumulative new business volume is up 22%.

Credit quality metrics were mixed. Receivables over 30 days increased to 2.5% in February, up from a two-year low of 1.9% in January, due to higher-than-normal delinquencies reported by one of the 25 companies responding to the survey. Charge-offs were unchanged from the previous month at 0.5%. Credit approvals rose to 79% in February up from 77% in January. 

Finally, total headcount for equipment finance companies in February remained unchanged from the previous month, and was down 3.0% year over year. Supplemental data show that the construction and trucking industries continued to lead the underperforming sectors. 

Separately, the Equipment Leasing & Finance Foundation's Monthly Confidence Index (MCI-EFI) for March is 61.7, up from the February index of 59.6, indicating industry participants are optimistic despite concerns that external factors, including gas prices and the upcoming elections, may have on the market. For more detailed information on the MCI-EFI visit www.LeaseFoundation.org

About the ELFA’s MLFI-25
The MLFI-25 is the only index that reflects capex, or the volume of commercial equipment financed in the U.S. The MLFI-25 is released globally at 8 a.m. Eastern time from Washington, D.C., each month, on the day before the U.S. Department of Commerce releases the durable goods report. The MLFI-25 is a financial indicator that complements the durable goods report and other economic indexes, including the Institute for Supply Management Index, which reports economic activity in the manufacturing sector. Together with the MLFI-25 these reports provide a complete view of the status of productive assets in the U.S. economy: equipment produced, acquired and financed.

The MLFI-25 is a time series that reflects two years of business activity for the 25 companies currently participating in the survey. The latest MLFI-25, including methodology and participants is available below and also at http://www.elfaonline.org/Research/MLFI/ 

MLFI-25 Methodology
The ELFA produces the MLFI-25 survey to help member organizations achieve competitive advantage by providing them with leading-edge research and benchmarking information to support strategic business decision making. 

The MLFI-25 is a barometer of the trends in U.S. capital equipment investment. Five components are included in the survey: new business volume (originations), aging of receivables, charge-offs, credit approval ratios, (approved vs. submitted) and headcount for the equipment finance business.

The MLFI-25 measures monthly commercial equipment lease and loan activity as reported by participating ELFA member equipment finance companies representing a cross section of the equipment finance sector, including small ticket, middle-market, large ticket, bank, captive and independent leasing and finance companies. Based on hard survey data, the responses mirror the economic activity of the broader equipment finance sector and current business conditions nationally. 

ELFA MLFI-25 Participants

• ADP Credit 
• BancorpSouth Equipment Finance
• Bank of America 
• Bank of the West
• BB&T Bank
• BMO Harris Equipment Finance Company
• Canon Financial Services
• Caterpillar Financial Services 
• CITDe Lage Landen Financial Services
• Dell Financial ServicesEverBank Commercial Finance
• Fifth Third Equipment Finance Company
• First American Equipment FinanceGreatAmerica Hitachi Credit America 
• HP Financial Services
• Huntington Equipment FinanceJohn Deere Financial
• Key Equipment Finance
• M&T Bank 
• Marlin Leasing 
• Merchants Capital
• PNC Equipment Finance
• RBS Asset Finance
• SG Equipment Finance
• Siemens Financial Services
• Stearns Bank
• Suntrust
• Susquehanna Commercial Finance 
• US Bancorp Equipment Finance
• Verizon Capital 
• Volvo Financial Services
• Wells Fargo Equipment Finance

About the ELFA 
The Equipment Leasing and Finance Association (ELFA) is the trade association that represents companies in the $628 billion equipment finance sector, which includes financial services companies and manufacturers engaged in financing capital goods. ELFA members are the driving force behind the growth in the commercial equipment finance market and contribute to capital formation in the U.S. and abroad. Its over 550 members include independent and captive leasing and finance companies, banks, financial services corporations, broker/packagers and investment banks, as well as manufacturers and service providers. ELFA has been equipping business for success for more than 50 years. For more information, please visit www.elfaonline.org.

ELFA is the premier source for statistics and analyses concerning the equipment finance sector. Please visit http://www.elfaonline.org/Research/  for additional information.

The Equipment Leasing & Finance Foundation is the non-profit affiliate to the Equipment Leasing and Finance Association, providing future-focused research to the equipment finance industry. For more information please visit the website at www.leasefoundation.org